ACCOUNTING FOR FINANCIAL AND MANAGERIAL CAUSES OF SHORT‐TERM PRESSURES IN BRITISH CORPORATIONS

Abstract

Short‐term pressures are defined and a distinction drawn between external S‐TP, mainly from shareholders, and internal S‐TP, from top management. A conceptual framework for analysing S‐TP is developed and empirical evidence for their existence reviewed. Although certain crude formulations of the argument for short‐termism are rejected, evidence is found for the existence of both types of S‐TP in the UK. Variations in their intensity among sectors can be accounted for partly by inherent differences in technology, and partly by differences in the behaviour of firms. Excessive diversification, particularly by acquisition, exacerbates S‐TP.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 25 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.